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I-Great Damai - Product Info - 10012014 PDF
I-Great Damai - Product Info - 10012014 PDF
I-Great Damai - Product Info - 10012014 PDF
MARKETING
Marketing Name : i-Great Damai
Plan Abbreviation : IL DAMAI
Distribution Channel : Agency
PLAN DESCRIPTION
Product Design
(a) This product is a regular contribution investment-linked Family Takaful plan with access to
professionally managed unit fund(s).
(b) This plan is an investment linked Family Takaful plan that matures at age 99.
(c) Contributions paid are channelled to the Participants Unit Account (PUA), in accordance with
the prescribed contribution allocation rates for each contribution year. The contributions will
be used to create unit fund(s) in the Takaful Fund of choice. The Total Account Value (TAV)
of the PUA for this plan will vary based on the actual performance of the unit fund(s).
(d) Upfront Charge (a.k.a. unallocated contributions) will be deducted from Total Contribution,
and;
(e) Charges to be deducted from the PUA consist of:
(i) Tabarru
(ii) Service Charge;
(iii) Fund Management Charge.
Note: Please refer to Section: Charges for details.
(f) Tabarru is deducted from the PUA and channelled to the Tabarru Fund (Risk Fund) where
the claim amounts (the Basic Sum Covered portion) are paid from.
Note: The Tabarru Fund must be distinctly separate and tracked independently from the
PUA.
(g) Basic Investment Contribution (BIC) = Takaful Contribution + Balancer (if any)
(h) This product will employ a single-pricing basis, where all transactions will be based on one
price only. This single price will now be known as the Net Asset Value (NAV).
BENEFITS
i. Death Benefit
Upon death of the Person Covered, the following will be payable:
Basic Sum Covered (BSC) from Tabarru Fund; plus
TAV from PUA where TAV is calculated at NAV at the next Valuation Date,
in one lump sum.
In the event of death occurring before age of 5 years next birthday, 100% of TAV and the
following percentage of BSC are payable.
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ii. Total and Permanent Disability (TPD) Benefit
Upon TPD prior to the certificate anniversary on which the Person Covered attains age 70 years
next birthday, the following will be payable:
(a) 100% TAV is payable in one lump sum (or be retained with the Takaful Operator as per
participants choice to continue paying for riders) from PUA.
(b) The BSC not exceeding RM2,000,000 under this certificate and all certificates and
riders on the same person shall be paid in 3 annual instalments with the first being a
lump sum of the BSC or RM1,000,000 whichever is lesser, and the balance of the BSC
(if any), will be payable in two equal, annual instalments of maximum RM500,000 each
from Tabarru Fund.
The maximum TPD Benefit payable under this and all certificates and riders on the same
person payable by Takaful Operator, is RM 2,000,000 per person.
However, if TPD occurs prior to the certificate anniversary on which the Person Covered
attains age 5 years next birthday, a child lien as per Death Benefit shall apply on BSC,
subject to a maximum amount of RM500,000 per person, payable by the Takaful Operator
under this and all certificates and riders on the same person.
CHARGES
i. Upfront Charge
Upfront Charge is the unallocated contributions which consist of agents commission and
distribution related expenses under the Takaful Operators fund.
The Upfront Charge is 100% minus the contribution allocation rates. Please refer to the
section on Contribution Allocation for the respective contribution allocation rates.
ii. Tabarru
(a) Basic benefit of Tabarru varies by the attained age next birthday, gender and smoker
status of the Person Covered.
(b) The monthly Tabarru are calculated as the sum covered times one twelfth of the
tabarru rates corresponding to the attained age.
(c) Tabarru is deducted monthly at the beginning of each certificate month by cancelling
units already allocated to the certificate under the PUA to Tabarru Fund, at the NAV on
the next Valuation Date following the due date of the Tabarru.
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iii. Service Charge
An administration charge of RM6 will be deducted at the beginning of each certificate month
by cancelling units already allocated to the certificate from the PUA, at the NAV at the next
Valuation Date.
(c) Value of Fund refers to the value of the appropriate fund as determined by the Takaful
Operator.
CONTRIBUTION
i. Contribution payment mode
This is an annual contribution plan but it can also be participated with half-yearly, quarterly or
monthly contribution instalments.
Once applied Golden Age Enhancer, the first contribution year BIC is requested to pay in full
contribution regardless of pay mode selected.
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iii. Female Rates / Non-smoker Discount
Rates vary by gender and smoker statuses.
v. Backdating
Not Applicable.
CONTRIBUTION ALLOCATION
Basic Investment Contribution = Takaful Contribution + Balancer (if any)
i. Takaful Contribution
The Takaful Contributions are allocated to the unit fund(s) of the PUA at the following rates:
Contribution Due and Paid Allocation Rate %
st nd
1 and 2 years 43
rd th
3 and 4 years 76
th th
5 and 6 years 85
th
7 and subsequent years 100
UNDERWRITING GUIDELINES
i. Min/Max Age at Entry
Minimum : 30 days old attained age
(19 years next birthday for certificate ownership)
Maximum : 70 years next birthday
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iv. Minimum/Maximum Sum Covered (SC)
New Business
Minimum : Subject to Sum Covered Multiple Rule.
Maximum : Subject to sufficiency tests whereby projected funds is sufficient to meet
projected risk and other charges over a pre-specified period.
In Force
Minimum : RM12,000
Maximum : Subject to sufficiency tests whereby projected funds is sufficient to meet
projected risk and other charges over a pre-specified period.
v. Non-Medical Limits
The proposal will be underwritten based on the combined Sum Covered of basic plan and
riders/supplementary benefits (where applicable). The non-medical limits are based on
current Internal Underwriting Guidelines / Field Underwriting Manual.
FLEXIBLE OPTIONS
i. Single Contribution Top Up
A participant can make further single contribution as investment top-ups subject to the
minimum of RM 1,000 each at any time provided the current year's and all previous years'
Basic Investment Contribution have been fulfilled.
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iii. Partial Withdrawal
Monies can be withdrawn by selling some of the units at the NAV in one or more of the
invested funds subject to the following conditions:
a) The minimum amount for partial withdrawal must equal to RM 1,000.
b) The aggregate value of the remaining units in all funds must be at least RM 5,000.
Dana i-Mekar
A fund where 80% to 100% of investment are equities, which may be volatile in the short term. This
fund seeks to achieve medium to long term capital appreciation. Although the fund is invested mainly
in Malaysia (80% - 100%), it may partially be invested in Singapore (up to 25%) and Hong Kong (up
to 25%), if and when necessary, to enhance the funds returns. Dana i-Mekar is only invested in
Shariah Approved securities.
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Dana i-Makmur
A fund which is invested in fixed income securities, for example government and corporate bonds
(ranging from 40% to 95%) with the balance invested in cash and cash equivalents. This fund seeks
to provide consistent return at low levels of volatility. Dana i-Makmur is only invested in Shariah
Approved securities.
Dana i-Majmuk
A fund which is invested in a mixture of equities, fixed income securities and money market
instruments. There is flexibility in asset allocation as this fund may be invested solely in fixed income
securities or equities. This fund seeks to provide medium to long-term capital appreciation, with a
moderate level of volatility. Dana i-Majmuk is only invested in Shariah Approved securities.
Phase 1
a) i-Critical Illness Benefit Rider (A416)
b) i-Medik Rider (A410 A414)
c) i-Hospitalisation Benefits Rider (A409)
d) i-Accidental Death and Dismemberment Benefits Rider (A406)
e) i-Provider on DD Rider (A403)
f) i-Provider on TPD Rider (A404)
g) i-Provider Plus Rider (A405)
h) i-Contributor Rider (A401)
i) i-Contributor Benefit Plus Rider (A402)
j) i-Early Payout Critical Care Rider (A417)
k) i-Accidental Medical Reimbursement Benefits Rider (A407)
l) i-Comprehensive Accident Benefits Xtra Rider (A408)
m) i-Great Income Rider (A415)
Please refer to the product write-up for the above riders for details.
Paid-up Values / Extended Term Takaful / Certificate Charge / Automatic Contribution Loan /
Bonus Rate / Option to Participate In New Certificate
Not applicable.
OTHER PRIVILEGES
i. Assignment/ Nomination
Allowed.
Note: 6% Service Tax is applicable to all contributions including single contribution top-ups
paid by business organisation as third parties.
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iii. Free-Look Period
Participant is allowed to cancel the certificate within 15 days. Under such circumstances, the
following will be payable:
(a) value of unit fund(s) that have been allocated to the certificate under the PUA; and
(b) any Tabarru and Service Charge that have been deducted from the value of unit fund(s);
and
(c) Upfront Charge (a.k.a. unallocated contributions)
less medical expenses incurred, if any.
iv. Reinstatement
(a) If the certificate is terminated as a result of non-payment of contributions following which
the Total Account Value is less than or equal to zero, participate may reinstate it within
three (3) years from the date of termination subject to the terms and conditions to be
determined by the Takaful Operator.
(b) Upon reinstatement, the outstanding contributions paid will first be used to offset the
accumulated debts, if any.
AGENCY COMPENSATION
i. Single Contribution Top Up / Balancer
The commissions are paid as a percentage of contributions paid, as detailed below.
Basic Overriding
Other Incentive*
Year of Contribution Paid Commission Commission
As a percentage of contributions paid
All 2.0% 1.0% 0.75%
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Persistency Bonus (PR) is payable upon meeting the prevailing qualifying requirement
(currently >= 90% First Year PR (PR12_A)) and is only payable on personal sales.
AGENCY REQUIREMENT
Only agents who have passed the Takaful Basic Exam (TBE) examination conducted by the
Malaysian Takaful Association (MTA) jointly with Malaysian Insurance Institute (MII) or its equivalent
are allowed to sell investment-linked family takaful certificates.
Note: The leader must also pass the TBE to be eligible for overriding commission.
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